Legal framework

A Fade reward is a sales promotion funded by the business, not a game of chance. Across the major markets we reviewed, a chance to win attached to a normal purchase, funded by the business, with nothing extra paid by the customer, is a recognised form of promotion. What changes from one market to the next is the paperwork, and it sits with the issuer as the organiser, as for any promotion it runs today.

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Promotion or game of chance

Most legal systems treat an offer as a lottery or a game of chance when it combines three things: a prize, chance, and a payment by the participant for that chance. A Fade reward always has a prize and chance. The design removes the third element: the issuer pays the ticket from the rewards budget it already spends, and the customer pays the normal price, never more.

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Design rules

Fade applies these rules in every market. They are what keeps a Fade reward on the promotion side of the line. The reward is permanent for the customer, like cashback.

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What the issuer handles

These obligations vary by market and belong to the issuer as organiser:

• Permits and filings, where required.
• Prize caps, through the payout table.
• A free entry route at equal odds (United States): one ticket per free entrant.
• Eligibility: markets, age, staff.
• The form of the credit to the customer.
• Prize taxes and guarantees, from the on-chain record.

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By region

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In short

For a card issuer, a Fade reward works like the cashback it already runs: same budget, same customer flow, a reward people talk about. In most markets it is a promotion the issuer can launch with the formalities it already knows. Fade’s design keeps the customer from ever paying for a chance, keeps card data out of the protocol, and keeps every draw open to inspection. See Card payments for the integration and Who pays what for the flow of funds.